No credit card required
Browse credit cards from a variety of issuers to see if there's a better card for you.
We would like to apply for one more CC in case our Chase (former WaMu/Providian) card is closed. It is our biggest TL and comprises about 30% of our available credit.
When I pulled my EQ CR recently, my utilization showed at about 21% (if I'm calculating it correctly). We PIF every month, but, until I began reading these forums, I naturally waited until the statements cut and then paid online. My CR therefore showed almost $10,000 utilization when in fact it had already been paid off. (We charge everything we can each month in order to earn travel credits.)
I have now learned to pay before the statement cuts, so we will show utilization near zero. August is my first cycle of paying before the statement cuts. My question is:
If I apply for a new CC and they pull a report, how long do I have to wait until my balances show no utilization? When they pull a CR, do the balances update immediately because a report is pulled, or do I need to wait a while for the CCs to all report the lower balances?
I know what I'm doing to improve my utilization scores...I just want to make sure I'm waiting long enough before I apply for the reports to update and show the lower utilization.
Thanks...Lynette
You have to wait till:
1. The CCC's report your updated account info
2. The CRA's update your CR with #1
The CCC's update 1x per month. The CRA's take 1 day to around a week to update your CR with the new info. Only after these updates will your CR show the new balances.
Thanks.
I thought balances might update automatically just because a report was pulled. Wrong.
Looks as if I'll be on the sidelines for a couple of months until I give the reporting time to catch up with our new payment method.
You have all been so helpful on these forums.
Thanks again.
It is possible to dispute an account balance as incorrect, if your account is paid off or down. However, you may end up with a "comment" on your CR that says "consumer disputes info" This doesn't affect score, but some people don't like it.
However, I have successfully gotten my balances updated in 2 to 14 days through an online dispute "Balance incorrect"
Otherwise, yep, you are going to have to wait till they update.
IMO, just wait. Only dispute in circumstances that require you to do so.
What I don't understand about the game is this: Say you pay your bill BEFORE the statement cuts in order to reflect the low utilization on your accounts like you said. Well then sure, you're reporting a small balance, but wouldn't you incur interest on that small balance due to the statement cutting unless you're in the middle of some 0% promo plan??
This is what I hope to do as soon as my card arrives in the mail. I'm hoping to hear back about this!
I don't think we're on the same page, hehe. I understand the billing cycle and all, but I'm referring to those balances being reported to CRAs. Also, say you're putting an entire month's living expense on your card instead of $50..
You want to carry a balance <9%, but you don't want to pay any interest at all..How do you ensure that grace periods and CRA updating mesh in that way?
@Anonymous wrote:I don't think we're on the same page, hehe. I understand the billing cycle and all, but I'm referring to those balances being reported to CRAs. Also, say you're putting an entire month's living expense on your card instead of $50..
You want to carry a balance <9%, but you don't want to pay any interest at all..How do you ensure that grace periods and CRA updating mesh in that way?
No, hauling is correct.
Let's say you have a balance of $1000 which you pay to $50 before statement. The statement cuts and sends statement with $50 balance. You have a $25 25-day Grace Period to pay that $50 balance and not incur any interest. Pay before the "due date" and you have no charges.
However, if you fail to pay the $50, you will not pay interest on $50, but on the daily average balance for the entire month. So be sure you pay the $50 by the due date.
Remember, the $50 is from the "previous statement cycle" and any charges you make currently are in the new billing cycle. You must pay the previous statement by due date. And if you want to avoid high utilization you must pay the entire or majority of current balance prior to the statement end date.
Hope that is clear as mud